R70 billion problem for top South African CEO, and major city gets approval to start cutting off Eskom
The rand struggled throughout Tuesday’s trading session as markets awaited the upcoming Jackson Hole symposium hosted by the US Federal Reserve, along with inflation data for South Africa.
The rand was trading at 17.66 against the dollar, reflecting a decline of about 0.3% from Monday’s closing value.
Fed Chair Jerome Powell is scheduled to address the economic outlook and the central bank’s policy framework on Friday, 22 August.
Analysts suggest that the risk-sensitive rand is likely to respond to the outcomes of this meeting, as it currently remains range-bound against the dollar.
Additionally, Statistics South Africa will release July inflation data today, 20 August, with most analysts anticipating an increase from June’s rate of 3.0%.
On Wednesday, 20 August, the rand was trading at R17.71 to the dollar, R23.86 to the pound and R20.60 to the euro. Oil was trading slightly lower at $65.98 a barrel.
Here are five other important things happening in and affecting South Africa today:
R70 billion problem for top South African CEO: Anglo American’s restructuring plans have faced a significant setback as Peabody Energy pulled out of a R70 billion deal to acquire its steelmaking coal assets. This marks a major problem for CEO Duncan Wanblad, who aimed to shift focus solely to copper, iron ore, and crop nutrients. Wanblad indicated that a legal battle may be on the cards. [Business Day]
Major city gets approval to start cutting off Eskom: Kgosientsho Ramokgopa approved eThekwini’s procurement of 400MW of power, 100MW from solar and 300MW from gas, to ensure an uninterrupted electricity supply. This makes eThekwini the first South African metro to obtain its own generation capacity. [MyBroadband]
R2 billion for poorly trained cops: Poorly trained police officers have cost South African taxpayers over R1.9 billion from 2019/20 to 2023/24. In the 2023/24 financial year alone, claims against the South African Police Service (SAPS) for wrongful arrests, detentions, and shooting incidents exceeded R15 billion. [Newsday]
Water crisis for KZN residents: eThekwini has one of the highest non-revenue water losses in the country, with an estimated 57% of its water lost through leaks, illegal connections and unbilled consumption. Residents in major KwaZulu-Natal municipalities warn that water restrictions will be ineffective without prioritising infrastructure maintenance. [Times Live]
Taxis not the law: Following a claim that taxi operators ordered motorists to refrain from carrying more than one passenger in their private cars, Santaco spokesperson Rebecca Phala insists that they have never issued any order of this nature to their patrollers or any other employees within the industry. Phala acknowledged them as acts of criminality. [eNCA]
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